Daily Commentary

Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Daily FX Commentary: (Morning Report)

EUR/USD The single extends weakness through 1.2919 handle, after brief corrective attempt, with losses accelerating on weak German data, to dent psychological support at 1.2900. Negative sentiment keeps the pressure at the downside, with negative near-term indicators and widening hourly Bollingers, setting scope for further retracement of two-month rally from 1.2042. Next downside targets lie at 1.2854/35, 13 Sep low / 50% retracement, with resistances at 1.2945, trendline and 1.2970, European session low and 1.3000 that is expected to cap any corrective movements. Res: 1.2954, 1.2955, 1.2970, 1.3000 Sup: 1.2900, 1.2890, 1.2854, 1.2835

GBP/USD The Cable dipped further during the European session, as reversal of morning’s recovery top at 1.6242, dipped to 1.6186 so far, over 76.4% Fibonacci retracement of initial 1.6162/1.6308 upleg. With negative tone dominating on lower timeframes studies and moving averages in a steep descend above the price, near-term focus lies on 1.6162, 20 Sep low and consolidation floor, reinforced by 4h 55 day EMA and seen as near-term breakpoint, loss of which to trigger fresh corrective action and expose 1.6100, Fib 38.2% of 1.5769/1.6308 rally. Initial support lies at 1.6200, while day’s high at 1.6242 is seen capping for now. Res: 1.6200, 1.6217, 1.6242, 1.6258 Sup: 1.6186, 1.6162, 1.6130, 1.6100 USD/JPY The pair’s near-term sideways movement, turns the sentiment more negative, as the price, unable to lift above range top at 78.36, attacks the base at 78.00. Acceleration lower on a break below 78.00 base, supported by negative near-term studies, sees risk of revisiting key near-term support zone at 77.12/00, with minor supports at 77.69/45, seen en-route. Res: 78.00, 78.27, 78.36, 78.45 Sup: 77.80, 77.69, 77.45, 77.12 USD/CHF The pair extends near-term recovery off 0.9237 low, as break above initial barriers at 0.9254/64, 20 Sep high / Fib 38.2% of 0.9577/0.9237, opened way towards key near-term barrier and pivotal point at 0.9400/16, where 200 day MA / 50% retracement and 13 Sep high lie. Positive near-term studies remain supportive, with break above the latter, required to resume recovery towards 0.9447, 61.8% and 0.9482, 10 Sep high. Previous barrier at 0.9354 offers initial support, ahead of 0.9320, day’s low, while loss of 0.9300 would sideline near-term bulls. Res: 0.9390, 0.9400, 0.9416, 0.9432 Sup: 0.9354, 0.9342, 0.9329, 0.9300

====================================================================

Daily Market Commentary: (Evening Report)

London Market Report

London close: Miners hit as no sign of gear-change in China
Market Movers

• techMARK 2,136.85 -0.08%
• FTSE 100 5,838.84 -0.24%
• FTSE 250 11,903.11 -0.39%

After reaching a nadir at midday, equities pared losses in the afternoon session, with defensive stocks enjoying a bit of support.

The morning had been characterised by gloom over China's economy and differences of opinion among the heavy hitters in the Eurozone.

Chinese central-bank advisor Song Guoqing comceded over the week-end that there are precious few signs of the Chinese economy recovering its mojo in the third quarter.

Sur le continent, investor sentiment was knocked by renewed concerns over the single currency region following France and Germany's failure to agree a schedule for initiating shared oversight of the region's banking sector.

Economic data from Germany further soured sentiment. Germany's IFO business climate indicator fell to 101.4 points in September, down from 102.3 in the previous month and the 102.5 expected by the market consensus. The business climate gauge has declined for a fifth consecutive month according to data from the IFO Institute in Munich.

Europe Market Report 

The Swiss Stock Market Pulled Back Monday On Growth Concerns

The Swiss stock market lost ground at the beginning of the new trading week, as investors took profits. The market was under pressure in early trade, after the disappointing German Ifo business sentiment report. The difference of opinion between Germany and France over banking regulation and ongoing concerns about Chinese growth also had a negative impact.

Growth concerns in China were triggered again after Song Guoqing, an academic adviser to the People's Bank of China, said he saw no signs of a rebound in the third quarter and domestic investment is unlikely to expand dramatically in the short term.

The Swiss Market Index fell by 0.13 percent Monday and finished at 6,597.22. The Swiss Leader Index declined by 0.32 percent and the Swiss Performance Index lost 0.16 percent.

Shares of cyclicals stocks were under pressure Monday. Lonza led the way, with a loss of 2.4 percent and Schindler fell by 1.6 percent. Geberit decreased by 1.3 percent and Adecco lost 1.2 percent.

Financial stocks also finished in negative territory at the start of the new trading week. Credit Suisse declined by 2.0 percent and UBS fell by 1.1 percent. Swiss Life was the largest decliner among the insurers, with a loss of 2.1 percent.

US Market Report

US open: Apple leads stocks lower -Apple off 2% after iPhone 5 sales estimates Dow Jones Industrial: -0.33% Nasdaq Comp.: 0.73% S&P 500: -0.44% The major US equity benchmarks have opened lower by 0.5% on average. That on the back of a rather weak news-flow out of the Eurozone over the weekend. Of interest, some market commentary is today calling attention to the poor performance year-to-date in the Dow Jones Transportation average as a precursor to weakness in financial markets. This ahead of what traditionally are two very weak months for stocks before seasonal strength kicks in during the run-up to the year´s end. With somewhat less negative implications perhaps, income at oil and gas producers will fall by 24% in the three months ending in September, the largest decline in three years, according to more than 1,200 analyst estimates compiled by Bloomberg. Excluding the retreat, earnings in the benchmark gauge for US stocks would climb 2.5%, the 12th straight increase, amid gains for banks and computer makers, the data shows. Back on the company front, Apple is down 2% after saying that it sold more than 5 million of its iPhone 5s in 3 days. That number is approximately half of what was expected by some analysts. Micron Technologies has been downgraded by analysts at Pacific Crest Securities to sector perform. Red Hat´s chief executive officer is looking to make acquisitions in the "cloud space," the news agency is reporting today. Crude futures falling on economic doubts Front month West Texas crude futures are now down by 1.53% to the 91.47 dollar per barrel level on the NYMEX. 10 year US Treasuries are now gaining by 8/32 dollars, with yields at 1.78%.